So I turn on my computer this morning and all the files on my desktop are now deleted! a ton of icons for games are gone to same with notepads. My downloads folder is now empty, my desktop background is back to windows 7 default and settings are changed because when I drag a window it doesn't drag the image with it it just shows a box that's outlined with the opposite colour of what's behind the box.
Try a System Restore to a point before this occurred. You may be in a a temporary profile. Did it say Setting Up Desktop just before it opened? Again, switch to System Recovery Options from disk if Win7 won't cooperate. Run a few Startup Repairs if System Restore won't work.